Table 13-23 -Refer to Table 13-23

question 183

Essay

Table 13-23
$\begin{array}{|c|c|c|}\hline \text { Year } & \begin{array}{c}\text { Nominal } \\\text { Minimum } \\\text { Wage }\end{array} & \begin{array}{c}\text { CPI } \\(1982-1984=100)\end{array} \\\hline 1974 & \$ 2.00 & 49.3 \\\hline 2017 & 7.25 & 244.3 \\\hline\end{array}$
-Refer to Table 13-23.The table above lists the actual minimum wage and CPI in 1974 and in 2017.Using the above table,calculate the real minimum wage for 1974 and 2017.Calculate the rate of growth of the real minimum wage from 1974 to 2017.Are workers better off in terms of the purchasing power of a dollar in 1974 or 2017? Explain why.